I don't think the business model is broken as such. It is just...

I don't think the business model is broken as such. It is just that a high interest rate environment reduces their value significantly and the revaluation in assets basically is what BNB will be relying on.

You can have some quality assets, but it becomes a problem when you have very little equity and the borrowings are significant.

As it stands, BNB will need to sell their holdings in some of the best assets in order to get their hands on cash.

Look at AFG....they have some outstanding assets which they are trying to hang on to (ie leasing business) and offloading the less valuable assets. Unfortunately, their share price is languishing while they rely on the banks to extend credit.

The banks don't want to wear too much risk and at the end of the day, they will want to be 100% certain that they are going to get their money back.

And finally, ou are betting against the hedge funds out there. Unless fund managers come in on the other side to buy (which they seem to be keeping away until the dust settles), this share price will languish. They will not punt on it. However, if it all look good and faith returns, you can bet they go it and all the shorters will be buying back so the price could actually have a good run.

Personally, think there i better value elsewhere.
If the share price gets down to $1, it may be worth a punt (and I'm not saying it necessarily will)

Just looking at the risk/reward.